Morning Report: Crude Oil Futures For February Settlement
A sharp rally breached 95.00-96.00 resistance invalidating the anticipated bearishness. We anticipate sharp up and downside moves during the upcoming holiday period as market volume shall drop significantly, thus trading with discretion is advised. Anyhow, trading settles back above 95.00 followed by 97.00 resistance levels. Where stochastic is extensively overbought, we may see a slight pullback, before attempting to the upside again; however we expect trading to remain confined within the channel shown on image above.
The trading range for the day may be among the major support at 95.00 and the major resistance at100.00.
The short-term trend is to the downside with steady daily closing below 105.00, targeting 65.00.
|Recommendation||Based on the charts and explanations above our opinion is buying crude around 96.00 and take profit at 97.00 and 98.00 stop loss with 4-hour closing below 95.40 might be appropriate.|